Asia/Pacific News
MFMs: Drop in Singapore Bunker Volumes Will Be Short Lived
Singaporean bunker supplier Sinanju Tankers has said shipowners are expected to recognise the benefits of mass flow meters (MFMs), meaning any drop in Singapore bunker sales should be short lived, Reuters reports.
Singapore has taken the lead in MFMs by mandating their use in bunkering operations at the port from the beginning of 2017.
The move is in an effort to increase transparency at the world's largest bunkering port, and hopes to eliminate volume related bunkering malpractices.
Some players have predicted that Singapore bunker suppliers will lose trade as a result of the move, which is expected to raise bunker prices, with suggestions that business could move to nearby Malaysia.
"Shipowners will be very interested in the meter but they are not willing to pay the premium," said one Singapore-based marine fuel trader.
However, Demond Chong, general manager of Sinanju Tankers believes suppliers will see MFMs positively after a potential initial drop in sales.
"I believe volumes would gradually improve as more shipowners would realise the benefits of a secured system that the meter offers when bunkering in Singapore," he said.
Simon Neo, executive director at Piroj International recently told an audience at Singapore's SIBCON conference that although MFM introudction may mean a bunker price rise on paper, bunker buyers would actually save money as a result of MFMs.
